2. Sections 1 through 11, and sections 14 and
15 of P.L.2007, c.340 (C.26:2C-45 through C.26:2C-55, and C.26:2C-56 through
C.26:2C-57) are repealed.

3. (New section) All of the unencumbered
moneys in the “Global Warming Solutions Fund,” established pursuant to section
6 of P.L.2007, c.340 (C.26:2C-50), are hereby transferred to the General Fund
to be made available for general appropriations purposes.

4. Section 5 of P.L.2009, c.256 (C.13.1L-33)
is amended to read as follows:

5. a. There is established in
the General Fund a special nonlapsing fund, to be known as the "Forest
Stewardship Incentive Fund." Moneys in the fund shall be dedicated to:

(1) providing grants to
persons for the purpose of developing and implementing a forest stewardship
plan pursuant to section 3 of P.L.2009, c.256 (C.13:1L-31);

(2) paying the costs of the
department to develop, implement, and administer the provisions of P.L.2009,
c.256 (C.13:1L-29 et al.); and

(3) providing for the
stewardship and management of State forests.

b. The fund shall be
credited with:

(1) [the amount allocated for
programs that enhance the stewardship and restoration of the State's forests
pursuant to section 7 of P.L.2007, c.340 (C.26:2C-51) from the "Global
Warming Solutions Fund," established pursuant to section 6 of P.L.2007,
c.340 (C.26:2C-50);

(2)] any [other] moneys as may be
appropriated to the fund by the Legislature or otherwise provided to the fund;
and

[(3)](2) any return on the investment of moneys deposited in the fund.

c. In each State fiscal
year, the amount credited to the Forest Stewardship Incentive Fund shall be
appropriated to the fund for the purposes set forth in this section.

d. The department may award
individual grants of up to $1,500 from the fund to pay for the cost of
developing a forest stewardship plan pursuant to section 3 of P.L.2009, c.256
(C.13:1L-31). If the cost of developing a forest stewardship plan exceeds
$1,500, the department may also award 80 percent of the cost that exceeds $1,500
to the owner, up to a maximum grant of $2,500. Grants from the fund may be
made to local government units, nonprofit organizations, and private owners of
forest land. Notwithstanding the provisions of this subsection to the
contrary, the amount of the grants prescribed by this subsection may be
adjusted annually by the department in direct proportion to the increase in the
Consumer Price Index for all urban consumers in the New York City area as
reported by the United States Department of Labor.

e. The department may
award individual grants through a cost-sharing program established pursuant to
subsection c. of section 8 of P.L.2009, c.256 (C.13:1L-36) to private owners
who have obtained a forest stewardship plan approved by the department pursuant
to section 3 of P.L.2009, c.256 (C.13:1L-31). The department shall expend no
more than $150,000 in any State fiscal year for grants awarded through the
cost-sharing program.

(cf: P.L.2009, c.256, s.5)

5. Section 3 of P.L.1999, c.23
(C.48:3-51) is amended to read as follows:

3. As used in this act:

"Assignee" means a person to which an
electric public utility or another assignee assigns, sells or transfers, other
than as security, all or a portion of its right to or interest in bondable
transition property. Except as specifically provided in P.L.1999, c.23
(C.48:3-49 et al.), an assignee shall not be subject to the public utility
requirements of Title 48 or any rules or regulations adopted pursuant thereto;

"Basic gas supply service" means gas
supply service that is provided to any customer that has not chosen an
alternative gas supplier, whether or not the customer has received offers as to
competitive supply options, including, but not limited to, any customer that
cannot obtain such service for any reason, including non-payment for services.
Basic gas supply service is not a competitive service and shall be fully
regulated by the board;

"Basic generation service" or
"BGS" means electric generation service that is provided, to any
customer that has not chosen an alternative electric power supplier, whether or
not the customer has received offers for competitive supply options, including,
but not limited to, any customer that cannot obtain such service from an
electric power supplier for any reason, including non-payment for services.
Basic generation service is not a competitive service and shall be fully
regulated by the board;

"Basic generation service provider" or
"provider" means a provider of basic generation service;

"Basic generation service transition
costs" means the amount by which the payments by an electric public
utility for the procurement of power for basic generation service and related
ancillary and administrative costs exceeds the net revenues from the basic
generation service charge established by the board pursuant to section 9 of
P.L.1999, c.23 (C.48:3-57) during the transition period, together with interest
on the balance at the board-approved rate, that is reflected in a deferred
balance account approved by the board in an order addressing the electric
public utility's unbundled rates, stranded costs, and restructuring filings
pursuant to P.L.1999, c.23 (C.48:3-49 et al.). Basic generation service
transition costs shall include, but are not limited to, costs of purchases from
the spot market, bilateral contracts, contracts with non-utility generators,
parting contracts with the purchaser of the electric public utility's divested
generation assets, short-term advance purchases, and financial instruments such
as hedging, forward contracts, and options. Basic generation service
transition costs shall also include the payments by an electric public utility
pursuant to a competitive procurement process for basic generation service
supply during the transition period, and costs of any such process used to
procure the basic generation service supply;

"Board" means the New Jersey Board of
Public Utilities or any successor agency;

"Bondable stranded costs" means any
stranded costs or basic generation service transition costs of an electric public
utility approved by the board for recovery pursuant to the provisions of
P.L.1999, c.23 (C.48:3-49 et al.), together with, as approved by the board: (1)
the cost of retiring existing debt or equity capital of the electric public
utility, including accrued interest, premium and other fees, costs and charges
relating thereto, with the proceeds of the financing of bondable transition
property; (2) if requested by an electric public utility in its application for
a bondable stranded costs rate order, federal, State and local tax liabilities
associated with stranded costs recovery or basic generation service transition
cost recovery or the transfer or financing of such property or both, including
taxes, whose recovery period is modified by the effect of a stranded costs
recovery order, a bondable stranded costs rate order or both; and (3) the costs
incurred to issue, service or refinance transition bonds, including interest,
acquisition or redemption premium, and other financing costs, whether paid upon
issuance or over the life of the transition bonds, including, but not limited
to, credit enhancements, service charges, overcollateralization, interest rate
cap, swap or collar, yield maintenance, maturity guarantee or other hedging
agreements, equity investments, operating costs and other related fees, costs
and charges, or to assign, sell or otherwise transfer bondable transition
property;

"Bondable stranded costs rate order"
means one or more irrevocable written orders issued by the board pursuant to
P.L.1999, c.23 (C.48:3-49 et al.) which determines the amount of bondable
stranded costs and the initial amount of transition bond charges authorized to
be imposed to recover such bondable stranded costs, including the costs to be
financed from the proceeds of the transition bonds, as well as on-going costs
associated with servicing and credit enhancing the transition bonds, and
provides the electric public utility specific authority to issue or cause to be
issued, directly or indirectly, transition bonds through a financing entity and
related matters as provided in P.L.1999, c.23, which order shall become
effective immediately upon the written consent of the related electric public
utility to such order as provided in P.L.1999, c.23;

"Bondable transition property" means
the property consisting of the irrevocable right to charge, collect and
receive, and be paid from collections of, transition bond charges in the amount
necessary to provide for the full recovery of bondable stranded costs which are
determined to be recoverable in a bondable stranded costs rate order, all
rights of the related electric public utility under such bondable stranded
costs rate order including, without limitation, all rights to obtain periodic
adjustments of the related transition bond charges pursuant to subsection b. of
section 15 of P.L.1999, c.23 (C.48:3-64), and all revenues, collections,
payments, money and proceeds arising under, or with respect to, all of the
foregoing;

"British thermal unit" or
"Btu" means the amount of heat required to increase the temperature
of one pound of water by one degree Fahrenheit;

"Broker" means a duly licensed
electric power supplier that assumes the contractual and legal responsibility
for the sale of electric generation service, transmission or other services to
end-use retail customers, but does not take title to any of the power sold, or
a duly licensed gas supplier that assumes the contractual and legal obligation
to provide gas supply service to end-use retail customers, but does not take
title to the gas;

"Buydown" means an arrangement or
arrangements involving the buyer and seller in a given power purchase contract
and, in some cases third parties, for consideration to be given by the buyer in
order to effectuate a reduction in the pricing, or the restructuring of other
terms to reduce the overall cost of the power contract, for the remaining
succeeding period of the purchased power arrangement or arrangements;

"Buyout" means an arrangement or
arrangements involving the buyer and seller in a given power purchase contract
and, in some cases third parties, for consideration to be given by the buyer in
order to effectuate a termination of such power purchase contract;

"Class I renewable energy" means
electric energy produced from solar technologies, photovoltaic technologies,
wind energy, fuel cells, geothermal technologies, wave or tidal action, and
methane gas from landfills or a biomass facility, provided that the biomass is
cultivated and harvested in a sustainable manner;

"Class II renewable energy" means
electric energy produced at a resource recovery facility or hydropower
facility, provided that such facility is located where retail competition is
permitted and provided further that the Commissioner of Environmental
Protection has determined that such facility meets the highest environmental
standards and minimizes any impacts to the environment and local communities;

"Co-generation" means the sequential
production of electricity and steam or other forms of useful energy used for
industrial or commercial heating and cooling purposes;

"Combined heat and power facility" or
"co-generation facility" means a generation facility which produces
electric energy, steam, or other forms of useful energy such as heat, which are
used for industrial or commercial heating or cooling purposes. A combined heat
and power facility or co-generation facility shall not be considered a public
utility;

"Competitive service" means any
service offered by an electric public utility or a gas public utility that the board
determines to be competitive pursuant to section 8 or section 10 of P.L.1999,
c.23 (C.48:3-56 or C.48:3-58) or that is not regulated by the board;

"Commercial and industrial energy pricing
class customer" or "CIEP class customer" means that group of
non-residential customers with high peak demand, as determined by periodic
board order, which either is eligible or which would be eligible, as determined
by periodic board order, to receive funds from the Retail Margin Fund
established pursuant to section 9 of P.L.1999, c.23 (C.48:3-57) and for which
basic generation service is hourly-priced;

"Comprehensive resource analysis"
means an analysis including, but not limited to, an assessment of existing
market barriers to the implementation of energy efficiency and renewable
technologies that are not or cannot be delivered to customers through a
competitive marketplace;

"Customer" means any person that is an
end user and is connected to any part of the transmission and distribution
system within an electric public utility's service territory or a gas public
utility's service territory within this State;

"Demand side management" means the
management of customer demand for energy service through the implementation of
cost-effective energy efficiency technologies, including, but not limited to,
installed conservation, load management and energy efficiency measures on and
in the residential, commercial, industrial, institutional and governmental
premises and facilities in this State;

"Electric generation service" means
the provision of retail electric energy and capacity which is generated
off-site from the location at which the consumption of such electric energy and
capacity is metered for retail billing purposes, including agreements and
arrangements related thereto;

"Electric power generator" means an
entity that proposes to construct, own, lease or operate, or currently owns,
leases or operates, an electric power production facility that will sell or
does sell at least 90 percent of its output, either directly or through a
marketer, to a customer or customers located at sites that are not on or
contiguous to the site on which the facility will be located or is located.
The designation of an entity as an electric power generator for the purposes of
P.L.1999, c.23 (C.48:3-49 et al.) shall not, in and of itself, affect the
entity's status as an exempt wholesale generator under the Public Utility
Holding Company Act of 1935, 15 U.S.C.s.79 et seq.;

"Electric power supplier" means a
person or entity that is duly licensed pursuant to the provisions of P.L.1999,
c.23 (C.48:3-49 et al.) to offer and to assume the contractual and legal
responsibility to provide electric generation service to retail customers, and
includes load serving entities, marketers and brokers that offer or provide
electric generation service to retail customers. The term excludes an electric
public utility that provides electric generation service only as a basic
generation service pursuant to section 9 of P.L.1999, c.23 (C.48:3-57);

"Electric public utility" means a
public utility, as that term is defined in R.S.48:2-13, that transmits and
distributes electricity to end users within this State;

"Electric related service" means a
service that is directly related to the consumption of electricity by an end
user, including, but not limited to, the installation of demand side management
measures at the end user's premises, the maintenance, repair or replacement of
appliances, lighting, motors or other energy-consuming devices at the end
user's premises, and the provision of energy consumption measurement and
billing services;

"Electronic signature" means an electronic
sound, symbol or process, attached to, or logically associated with, a contract
or other record, and executed or adopted by a person with the intent to sign
the record;

"Energy agent" means a person that is
duly registered pursuant to the provisions of P.L.1999, c.23 (C.48:3-49 et
al.), that arranges the sale of retail electricity or electric related services
or retail gas supply or gas related services between government aggregators or
private aggregators and electric power suppliers or gas suppliers, but does not
take title to the electric or gas sold;

"Energy consumer" means a business or
residential consumer of electric generation service or gas supply service
located within the territorial jurisdiction of a government aggregator;

"Energy efficiency portfolio standard"
means a requirement to procure a specified amount of energy efficiency or
demand side management resources as a means of managing and reducing energy
usage and demand by customers;

"Energy year" or "EY" means
the 12-month period from June 1st through May 31st and shall be numbered
according to the calendar year in which it ends;

"Financing entity" means an electric
public utility, a special purpose entity, or any other assignee of bondable
transition property, which issues transition bonds. Except as specifically
provided in P.L.1999, c.23 (C.48:3-49 et al.), a financing entity which is not
itself an electric public utility shall not be subject to the public utility
requirements of Title 48 or any rules or regulations adopted pursuant thereto;

"Gas public utility" means a public
utility, as that term is defined in R.S.48:2-13, that distributes gas to end
users within this State;

"Gas related service" means a service
that is directly related to the consumption of gas by an end user, including,
but not limited to, the installation of demand side management measures at the
end user's premises, the maintenance, repair or replacement of appliances or
other energy-consuming devices at the end user's premises, and the provision of
energy consumption measurement and billing services;

"Gas supplier" means a person that is
duly licensed pursuant to the provisions of P.L.1999, c.23 (C.48:3-49 et al.)
to offer and assume the contractual and legal obligation to provide gas supply
service to retail customers, and includes, but is not limited to, marketers and
brokers. A non-public utility affiliate of a public utility holding company
may be a gas supplier, but a gas public utility or any subsidiary of a gas
utility is not a gas supplier. In the event that a gas public utility is not
part of a holding company legal structure, a related competitive business
segment of that gas public utility may be a gas supplier, provided that related
competitive business segment is structurally separated from the gas public
utility, and provided that the interactions between the gas public utility and
the related competitive business segment are subject to the affiliate relations
standards adopted by the board pursuant to subsection k. of section 10 of
P.L.1999, c.23 (C.48:3-58);

"Gas supply service" means the
provision to customers of the retail commodity of gas, but does not include any
regulated distribution service;

"Government aggregator" means any
government entity subject to the requirements of the "Local Public
Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), the "Public
School Contracts Law," N.J.S.18A:18A-1 et seq., or the "County
College Contracts Law," P.L.1982, c.189 (C.18A:64A-25.1 et seq.), that
enters into a written contract with a licensed electric power supplier or a
licensed gas supplier for: (1) the provision of electric generation service,
electric related service, gas supply service, or gas related service for its
own use or the use of other government aggregators; or (2) if a municipal or
county government, the provision of electric generation service or gas supply
service on behalf of business or residential customers within its territorial
jurisdiction;

"Government energy aggregation
program" means a program and procedure pursuant to which a government
aggregator enters into a written contract for the provision of electric
generation service or gas supply service on behalf of business or residential
customers within its territorial jurisdiction;

["Greenhouse gas
emissions portfolio standard" means a requirement that addresses or limits
the amount of carbon dioxide emissions indirectly resulting from the use of
electricity as applied to any electric power suppliers and basic generation
service providers of electricity;

"Leakage" means an increase in
greenhouse gas emissions related to generation sources located outside of the
State that are not subject to a state, interstate or regional greenhouse gas
emissions cap or standard that applies to generation sources located within the
State;]

"Market transition charge" means a
charge imposed pursuant to section 13 of P.L.1999, c.23 (C.48:3-61) by an
electric public utility, at a level determined by the board, on the electric
public utility customers for a limited duration transition period to recover
stranded costs created as a result of the introduction of electric power supply
competition pursuant to the provisions of P.L.1999, c.23 (C.48:3-49 et al.);

"Marketer" means a duly licensed
electric power supplier that takes title to electric energy and capacity,
transmission and other services from electric power generators and other
wholesale suppliers and then assumes the contractual and legal obligation to
provide electric generation service, and may include transmission and other
services, to an end-use retail customer or customers, or a duly licensed gas
supplier that takes title to gas and then assumes the contractual and legal
obligation to provide gas supply service to an end-use customer or customers;

"Net proceeds" means proceeds less
transaction and other related costs as determined by the board;

"Net revenues" means revenues less
related expenses, including applicable taxes, as determined by the board;

"Off-site end use thermal energy services
customer" means an end use customer that purchases thermal energy services
from an on-site generation facility, combined heat and power facility, or
co-generation facility, and that is located on property that is separated from
the property on which the on-site generation facility, combined heat and power
facility, or co-generation facility is located by more than one easement,
public thoroughfare, or transportation or utility-owned right-of-way;

"On-site generation facility" means a
generation facility, and equipment and services appurtenant to electric sales
by such facility to the end use customer located on the property or on property
contiguous to the property on which the end user is located. An on-site
generation facility shall not be considered a public utility. The property of
the end use customer and the property on which the on-site generation facility
is located shall be considered contiguous if they are geographically located
next to each other, but may be otherwise separated by an easement, public
thoroughfare, transportation or utility-owned right-of-way, or if the end use
customer is purchasing thermal energy services produced by the on-site
generation facility, for use for heating or cooling, or both, regardless of
whether the customer is located on property that is separated from the property
on which the on-site generation facility is located by more than one easement,
public thoroughfare, or transportation or utility-owned right-of-way;

"Private aggregator" means a
non-government aggregator that is a duly-organized business or non-profit
organization authorized to do business in this State that enters into a
contract with a duly licensed electric power supplier for the purchase of electric
energy and capacity, or with a duly licensed gas supplier for the purchase of
gas supply service, on behalf of multiple end-use customers by combining the
loads of those customers;

"Public utility holding company"
means: (1) any company that, directly or indirectly, owns, controls, or holds
with power to vote, ten percent or more of the outstanding voting securities of
an electric public utility or a gas public utility or of a company which is a
public utility holding company by virtue of this definition, unless the
Securities and Exchange Commission, or its successor, by order declares such
company not to be a public utility holding company under the Public Utility
Holding Company Act of 1935, 15 U.S.C.s.79 et seq., or its successor; or (2)
any person that the Securities and Exchange Commission, or its successor,
determines, after notice and opportunity for hearing, directly or indirectly,
to exercise, either alone or pursuant to an arrangement or understanding with
one or more other persons, such a controlling influence over the management or
policies of an electric public utility or a gas public utility or public
utility holding company as to make it necessary or appropriate in the public
interest or for the protection of investors or consumers that such person be
subject to the obligations, duties, and liabilities imposed in the Public
Utility Holding Company Act of 1935 or its successor;

"Regulatory asset" means an asset
recorded on the books of an electric public utility or gas public utility
pursuant to the Statement of Financial Accounting Standards, No. 71, entitled
"Accounting for the Effects of Certain Types of Regulation," or any
successor standard and as deemed recoverable by the board;

"Related competitive business segment of an
electric public utility or gas public utility" means any business venture
of an electric public utility or gas public utility including, but not limited
to, functionally separate business units, joint ventures, and partnerships,
that offers to provide or provides competitive services;

"Related competitive business segment of a
public utility holding company" means any business venture of a public
utility holding company, including, but not limited to, functionally separate
business units, joint ventures, and partnerships and subsidiaries, that offers
to provide or provides competitive services, but does not include any related
competitive business segments of an electric public utility or gas public
utility;

"Renewable energy certificate" or
"REC" means a certificate representing the environmental benefits or
attributes of one megawatt-hour of generation from a generating facility that
produces Class I or Class II renewable energy, but shall not include a solar
renewable energy certificate;

"Resource recovery facility" means a
solid waste facility constructed and operated for the incineration of solid
waste for energy production and the recovery of metals and other materials for
reuse;

"Restructuring related costs" means
reasonably incurred costs directly related to the restructuring of the electric
power industry, including the closure, sale, functional separation and
divestiture of generation and other competitive utility assets by a public
utility, or the provision of competitive services as such costs are determined
by the board, and which are not stranded costs as defined in P.L.1999, c.23
(C.48:3-49 et al.) but may include, but not be limited to, investments in
management information systems, and which shall include expenses related to
employees affected by restructuring which result in efficiencies and which
result in benefits to ratepayers, such as training or retraining at the level
equivalent to one year's training at a vocational or technical school or county
community college, the provision of severance pay of two weeks of base pay for
each year of full-time employment, and a maximum of 24 months' continued health
care coverage. Except as to expenses related to employees affected by
restructuring, "restructuring related costs" shall not include going
forward costs;

"Retail choice" means the ability of
retail customers to shop for electric generation or gas supply service from
electric power or gas suppliers, or opt to receive basic generation service or
basic gas service, and the ability of an electric power or gas supplier to
offer electric generation service or gas supply service to retail customers,
consistent with the provisions of P.L.1999, c.23 (C.48:3-49 et al.);

"Retail margin" means an amount,
reflecting differences in prices that electric power suppliers and electric
public utilities may charge in providing electric generation service and basic
generation service, respectively, to retail customers, excluding residential
customers, which the board may authorize to be charged to categories of basic
generation service customers of electric public utilities in this State, other
than residential customers, under the board's continuing regulation of basic
generation service pursuant to sections 3 and 9 of P.L.1999, c.23 (C.48:3-51
and 48:3-57), for the purpose of promoting a competitive retail market for the
supply of electricity;

"Shopping credit" means an amount
deducted from the bill of an electric public utility customer to reflect the
fact that such customer has switched to an electric power supplier and no longer
takes basic generation service from the electric public utility;

"Social program" means a program
implemented with board approval to provide assistance to a group of
disadvantaged customers, to provide protection to consumers, or to accomplish a
particular societal goal, and includes, but is not limited to, the winter
moratorium program, utility practices concerning "bad debt"
customers, low income assistance, deferred payment plans, weatherization
programs, and late payment and deposit policies, but does not include any
demand side management program or any environmental requirements or controls;

"Societal benefits charge" means a
charge imposed by an electric public utility, at a level determined by the
board, pursuant to, and in accordance with, section 12 of P.L.1999, c.23
(C.48:3-60);

"Solar alternative compliance payment"
or "SACP" means a payment of a certain dollar amount per megawatt
hour (MWh) which an electric power supplier or provider may submit to the board
in order to comply with the solar electric generation requirements under
section 38 of P.L.1999, c.23 (C.48:3-87);

"Solar renewable energy certificate"
or "SREC" means a certificate issued by the board or its designee,
representing one megawatt hour (MWh) of solar energy that is generated by a
facility connected to the distribution system in this State and has value based
upon, and driven by, the energy market;

"Stranded cost" means the amount by
which the net cost of an electric public utility's electric generating assets
or electric power purchase commitments, as determined by the board consistent
with the provisions of P.L.1999, c.23 (C.48:3-49 et al.), exceeds the market
value of those assets or contractual commitments in a competitive supply
marketplace and the costs of buydowns or buyouts of power purchase contracts;

"Stranded costs recovery order" means
each order issued by the board in accordance with subsection c. of section 13
of P.L.1999, c.23 (C.48:3-61) which sets forth the amount of stranded costs, if
any, the board has determined an electric public utility is eligible to recover
and collect in accordance with the standards set forth in section 13 of
P.L.1999, c.23 (C.48:3-61) and the recovery mechanisms therefor;

"Thermal efficiency" means the useful
electric energy output of a facility, plus the useful thermal energy output of
the facility, expressed as a percentage of the total energy input to the
facility;

"Transition bond charge" means a
charge, expressed as an amount per kilowatt hour, that is authorized by and imposed
on electric public utility ratepayers pursuant to a bondable stranded costs
rate order, as modified at any time pursuant to the provisions of P.L.1999,
c.23 (C.48:3-49 et al.);

"Transition bonds" means bonds, notes,
certificates of participation or beneficial interest or other evidences of
indebtedness or ownership issued pursuant to an indenture, contract or other
agreement of an electric public utility or a financing entity, the proceeds of
which are used, directly or indirectly, to recover, finance or refinance
bondable stranded costs and which are, directly or indirectly, secured by or
payable from bondable transition property. References in P.L.1999, c.23
(C.48:3-49 et al.) to principal, interest, and acquisition or redemption
premium with respect to transition bonds which are issued in the form of
certificates of participation or beneficial interest or other evidences of
ownership shall refer to the comparable payments on such securities;

"Transition period" means the period
from August
1, 1999
through July
31, 2003;

"Transmission and distribution system"
means, with respect to an electric public utility, any facility or equipment
that is used for the transmission, distribution or delivery of electricity to
the customers of the electric public utility including, but not limited to, the
land, structures, meters, lines, switches and all other appurtenances thereof
and thereto, owned or controlled by the electric public utility within this
State; and

"Universal service" means any service
approved by the board with the purpose of assisting low-income residential
customers in obtaining or retaining electric generation or delivery service.

(cf: P.L.2009, c.289, s.1)

6. Section 38 of P.L.1999, c.23 (C.48:3-87)
is amended to read as follows:

38. a. The board shall
require an electric power supplier or basic generation service provider to
disclose on a customer's bill or on customer contracts or marketing materials,
a uniform, common set of information about the environmental characteristics of
the energy purchased by the customer, including, but not limited to:

(1) Its fuel mix, including
categories for oil, gas, nuclear, coal, solar, hydroelectric, wind and biomass,
or a regional average determined by the board;

(2) Its emissions, in pounds
per megawatt hour, of sulfur dioxide, carbon dioxide, oxides of nitrogen, and
any other pollutant that the board may determine to pose an environmental or
health hazard, or an emissions default to be determined by the board; and

b. Notwithstanding any
provisions of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding and
shall adopt, in consultation with the Department of Environmental Protection,
after notice and opportunity for public comment and public hearing, interim
standards to implement this disclosure requirement, including, but not limited
to:

(1) A methodology for
disclosure of emissions based on output pounds per megawatt hour;

(2) Benchmarks for all
suppliers and basic generation service providers to use in disclosing emissions
that will enable consumers to perform a meaningful comparison with a supplier's
or basic generation service provider's emission levels; and

(3) A uniform emissions
disclosure format that is graphic in nature and easily understandable by
consumers. The board shall periodically review the disclosure requirements to
determine if revisions to the environmental disclosure system as implemented
are necessary.

Such standards shall be
effective as regulations immediately upon filing with the Office of
Administrative Law and shall be effective for a period not to exceed 18 months,
and may, thereafter, be amended, adopted or readopted by the board in
accordance with the provisions of the "Administrative Procedure Act."

c. (1) The board may
adopt, in consultation with the Department of Environmental Protection, after
notice and opportunity for public comment, an emissions portfolio standard
applicable to all electric power suppliers and basic generation service
providers, upon a finding that:

(a) The standard is
necessary as part of a plan to enable the State to meet federal Clean Air Act
or State ambient air quality standards; and

(b) Actions at the regional
or federal level cannot reasonably be expected to achieve the compliance with
the federal standards.

(2) [By July 1, 2009, the]The board shall
adopt [, pursuant
to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et
seq.), a greenhouse gas]an emissions portfolio standard [to
mitigate leakage or another regulatory mechanism to mitigate leakage] applicable to all
electric power suppliers and basic generation service providers [that provide electricity
to customers within the State], if two other states in the PJM power pool comprising at least 40 percent
of the retail electric usage in the PJM Interconnection, L.L.C. independent
system operator or its successor adopt such standards. [The greenhouse gas
emissions portfolio standard or any other regulatory mechanism to mitigate
leakage shall:

(a) Allow a transition
period, either before or after the effective date of the regulation to mitigate
leakage, for a basic generation service provider or electric power supplier to
either meet the emissions portfolio standard or other regulatory mechanism to
mitigate leakage, or to transfer any customer to a basic generation service
provider or electric power supplier that meets the emissions portfolio standard
or other regulatory mechanism to mitigate leakage. If the transition period
allowed pursuant to this subparagraph occurs after the implementation of an
emissions portfolio standard or other regulatory mechanism to mitigate leakage,
the transition period shall be no longer than three years; and

(b) Exempt the provision of
basic generation service pursuant to a basic generation service purchase and
sale agreement effective prior to the date of the regulation.

Unless the Attorney General or
the Attorney General's designee determines that a greenhouse gas emissions
portfolio standard would unconstitutionally burden interstate commerce or would
be preempted by federal law, the adoption by the board of an electric energy
efficiency portfolio standard pursuant to subsection g. of this section, a gas
energy efficiency portfolio standard pursuant to subsection h. of this section,
or any other enhanced energy efficiency policies to mitigate leakage shall not
be considered sufficient to fulfill the requirement of this subsection for the
adoption of a greenhouse gas emissions portfolio standard or any other
regulatory mechanism to mitigate leakage.]

d. Notwithstanding any
provisions of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding and
shall adopt, after notice, provision of the opportunity for comment, and public
hearing, renewable energy portfolio standards that shall require:

(1) that two and one-half
percent of the kilowatt hours sold in this State by each electric power
supplier and each basic generation service provider be from Class I or Class II
renewable energy sources; and

(2) beginning on January 1, 2001, that one-half of one percent of the kilowatt hours sold in this State by
each electric power supplier and each basic generation service provider be from
Class I renewable energy sources. The board shall increase the required
percentage for Class I renewable energy sources so that by January 1, 2006, one
percent of the kilowatt hours sold in this State by each electric power
supplier and each basic generation service provider shall be from Class I
renewable energy sources and shall additionally increase the required
percentage for Class I renewable energy sources by one-half of one percent each
year until January 1, 2012, when four percent of the kilowatt hours sold in
this State by each electric power supplier and each basic generation service
provider shall be from Class I renewable energy sources.

An electric power supplier or
basic generation service provider may satisfy the requirements of this
subsection by participating in a renewable energy trading program approved by
the board in consultation with the Department of Environmental Protection.

(3) that the board establish
a multi-year schedule, applicable to each electric power supplier or basic
generation service provider in this State, beginning with the one-year period
commencing on June 1, 2010, and continuing for each subsequent one-year period up
to and including, the one-year period commencing on June 1, 2025, that requires
suppliers or providers to purchase at least the following number of
kilowatt-hours from solar electric power generators in this State:

EY 2011 306 Gigawatthours
(Gwhrs)

EY 2012 442 Gwhrs

EY 2013 596 Gwhrs

EY 2014 772 Gwhrs

EY 2015 965 Gwhrs

EY 2016 1,150 Gwhrs

EY 2017 1,357 Gwhrs

EY 2018 1,591 Gwhrs

EY 2019 1,858 Gwhrs

EY 2020 2,164 Gwhrs

EY 2021 2,518 Gwhrs

EY 2022 2,928 Gwhrs

EY 2023 3,433 Gwhrs

EY 2024 3,989 Gwhrs

EY 2025 4,610 Gwhrs

EY 2026 5,316 Gwhrs

EY 2027, and for every energy year
thereafter, at least 5,316 Gwhrs per energy year to reflect an increasing
number of kilowatt-hours to be purchased by suppliers or providers from solar
electric power generators in this State, and to establish a framework within
which suppliers and providers shall purchase at least 2,518 Gwhrs in the energy
year 2021 and 5,316 Gwhrs in the energy year 2026 from solar electric power
generators in this State, provided, however, that the number of solar
kilowatt-hours required to be purchased by each supplier or provider, when
expressed as a percentage of the total number of solar kilowatt-hours purchased
in this State, shall be equivalent to each supplier's or provider's
proportionate share of the total number of kilowatt-hours sold in this State by
all suppliers and providers.

The solar renewable portfolio
standards requirements in paragraph (3) of this subsection shall automatically
increase by 20% for the remainder of the schedule in the event that the
following two conditions are met: (a) the number of SRECs generated meets or
exceeds the requirement for three consecutive reporting years, starting with
energy year 2013; and (b) the average SREC price for all SRECs purchased by
entities with renewable energy portfolio standards obligations has decreased in
the same three consecutive reporting years. The board shall exempt providers'
existing supply contracts that are: (a) effective prior to the date of
P.L.2009, c.289; or (b) effective prior to any future increase in the solar
renewable portfolio standard beyond the multi-year schedule established in paragraph
(3) of this subsection. This exemption shall apply to the number of SRECs that
exceeds the number mandated by the solar renewable portfolio standards
requirements that were in effect on the date that the providers executed their
existing supply contracts. This limited exemption for providers' existing
supply contracts shall not be construed to lower the Statewide solar purchase
requirements set forth in paragraph (3) of this subsection. Such incremental
new requirements shall be distributed over the electric power suppliers and
providers not subject to the existing supply contract exemption until such time
as existing supply contracts expire and all suppliers are subject to the new
requirement.

An electric power supplier or
basic generation service provider may satisfy the requirements of this
subsection by participating in a renewable energy trading program approved by
the board in consultation with the Department of Environmental Protection, or
compliance with the requirements of this subsection may be demonstrated to the
board by suppliers or providers through the purchase of SRECs.

The renewable energy portfolio
standards adopted by the board pursuant to paragraphs (1) and (2) of this
subsection shall be effective as regulations immediately upon filing with the
Office of Administrative Law and shall be effective for a period not to exceed
18 months, and may, thereafter, be amended, adopted or readopted by the board
in accordance with the provisions of the "Administrative Procedure Act."

The renewable energy portfolio
standards adopted by the board pursuant to paragraph (3) of this subsection
shall be effective as regulations immediately upon filing with the Office of
Administrative Law and shall be effective for a period not to exceed 30 months after
such filing, and shall, thereafter, be amended, adopted or readopted by the
board in accordance with the "Administrative Procedure Act."

e. Notwithstanding any
provisions of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding and
shall adopt, after notice, provision of the opportunity for comment, and public
hearing:

(1) net metering standards
for electric power suppliers and basic generation service providers. The
standards shall require electric power suppliers and basic generation service
providers to offer net metering at non-discriminatory rates to industrial,
large commercial, residential and small commercial customers, as those
customers are classified or defined by the board, that generate electricity, on
the customer's side of the meter, using a Class I renewable energy source, for
the net amount of electricity supplied by the electric power supplier or basic
generation service provider over an annualized period. Systems of any sized
capacity, as measured in watts, are eligible for net metering. If the amount
of electricity generated by the customer-generator, plus any kilowatt hour
credits held over from the previous billing periods, exceeds the electricity
supplied by the electric power supplier or basic generation service provider,
then the electric power supplier or basic generation service provider, as the
case may be, shall credit the customer-generator for the excess kilowatt hours
until the end of the annualized period at which point the customer-generator
will be compensated for any remaining credits or, if the customer-generator
chooses, credit the customer-generator on a real-time basis, at the electric
power supplier's or basic generation service provider's avoided cost of
wholesale power or the PJM electric power pool's real-time locational marginal
pricing rate, adjusted for losses, for the respective zone in the PJM electric
power pool. Alternatively, the customer-generator may execute a bilateral agreement
with an electric power supplier or basic generation service provider for the
sale and purchase of the customer-generator's excess generation. The
customer-generator may be credited on a real-time basis, so long as the
customer-generator follows applicable rules prescribed by the PJM electric
power pool for its capacity requirements for the net amount of electricity
supplied by the electric power supplier or basic generation service provider.
The board may authorize an electric power supplier or basic generation service
provider to cease offering net metering whenever the total rated generating
capacity owned and operated by net metering customer-generators Statewide
equals 2.5 percent of the State's peak electricity demand;

(2) safety and power quality
interconnection standards for Class I renewable energy source systems used by a
customer-generator that shall be eligible for net metering.

Such standards or rules shall
take into consideration the goals of the New Jersey Energy Master Plan,
applicable industry standards, and the standards of other states and the Institute
of Electrical and Electronic Engineers. The board shall allow electric public
utilities to recover the costs of any new net meters, upgraded net meters,
system reinforcements or upgrades, and interconnection costs through either
their regulated rates or from the net metering customer-generator; and

(3) credit or other
incentive rules for generators using Class I renewable energy generation
systems that connect to New Jersey's electric public utilities' distribution
system but who do not net meter.

Such rules shall require the
board or its designee to issue a credit or other incentive to those generators
that do not use a net meter but otherwise generate electricity derived from a
Class I renewable energy source and to issue an enhanced credit or other
incentive, including, but not limited to, a solar renewable energy credit, to
those generators that generate electricity derived from solar technologies.

Such standards or rules shall
be effective as regulations immediately upon filing with the Office of
Administrative Law and shall be effective for a period not to exceed 18 months,
and may, thereafter, be amended, adopted or readopted by the board in
accordance with the provisions of the "Administrative Procedure Act."

f. The board may assess,
by written order and after notice and opportunity for comment, a separate fee
to cover the cost of implementing and overseeing an emission disclosure system
or emission portfolio standard, which fee shall be assessed based on an
electric power supplier's or basic generation service provider's share of the
retail electricity supply market. [The
board shall not impose a fee for the cost of implementing and overseeing a
greenhouse gas emissions portfolio standard adopted pursuant to paragraph (2)
of subsection c. of this section, the electric energy efficiency portfolio
standard adopted pursuant to subsection g. of this section, or the gas energy
efficiency portfolio standard adopted pursuant to subsection h. of this
section.]

g. The board may adopt,
pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), an electric energy efficiency portfolio standard that may
require each electric public utility to implement energy efficiency measures
that reduce electricity usage in the State by 2020 to a level that is 20
percent below the usage projected by the board in the absence of such a
standard. Nothing in this section shall be construed to prevent an electric
public utility from meeting the requirements of this section by contracting
with another entity for the performance of the requirements.

h. The board may adopt,
pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), a gas energy efficiency portfolio standard that may
require each gas public utility to implement energy efficiency measures that
reduce natural gas usage for heating in the State by 2020 to a level that is 20
percent below the usage projected by the board in the absence of such a standard.
Nothing in this section shall be construed to prevent a gas public utility from
meeting the requirements of this section by contracting with another entity for
the performance of the requirements.

i. After the board
establishes a schedule of solar kilowatt-hour sale or purchase requirements
pursuant to paragraph (3) of subsection d. of this section, the board may
initiate subsequent proceedings and adopt, after appropriate notice and
opportunity for public comment and public hearing, increased minimum solar
kilowatt-hour sale or purchase requirements, provided that the board shall not
reduce previously established minimum solar kilowatt-hour sale or purchase
requirements, or otherwise impose constraints that reduce the requirements by
any means.

j. The board shall
determine an appropriate level of solar alternative compliance payment, and
establish a 15-year solar alternative compliance payment schedule, that permits
each supplier or provider to submit an SACP to comply with the solar electric
generation requirements of paragraph (3) of subsection d. of this section. The
board may initiate subsequent proceedings and adopt, after appropriate notice
and opportunity for public comment and public hearing, an increase in solar
alternative compliance payments, provided that the board shall not reduce
previously established levels of solar alternative compliance payments, nor
shall the board provide relief from the obligation of payment of the SACP by
the electric power suppliers or basic generation service providers in any
form. Any SACP payments collected shall be refunded directly to the ratepayers
by the electric public utilities.

k. The board may allow
electric public utilities to offer long-term contracts and other means of
financing, including but not limited to loans, for the purchase of SRECs and
the resale of SRECs to suppliers or providers or others, provided that after
such contracts have been approved by the board, the board's approvals shall not
be modified by subsequent board orders.

l. The board shall
implement its responsibilities under the provisions of this section in such a
manner as to:

(1) place greater reliance
on competitive markets, with the explicit goal of encouraging and ensuring the
emergence of new entrants that can foster innovations and price competition;

m. The board shall ensure
the availability of financial incentives under its jurisdiction, including, but
not limited to, long-term contracts, loans, SRECs, or other financial support,
to ensure market diversity, competition, and appropriate coverage across all
ratepayer segments, including, but not limited to, residential, commercial,
industrial, non-profit, farms, schools, and public entity customers.

n. For projects which are
owned, or directly invested in, by a public utility pursuant to section 13 of
P.L.2007, c.340 (C.48:3-98.1), the board shall determine the number of SRECs
with which such projects shall be credited; and in determining such number the
board shall ensure that the market for SRECs does not detrimentally affect the
development of non-utility solar projects and shall consider how its
determination may impact the ratepayers.

o. The board, in
consultation with the Department of Environmental Protection, electric public
utilities, the Division of Rate Counsel in the Department of the Public
Advocate, affected members of the solar energy industry, and relevant
stakeholders, shall periodically consider increasing the renewable energy
portfolio standards beyond the minimum amounts set forth in subsection d. of
this section, taking into account the cost impacts and public benefits of such
increases including, but not limited to:

(1) reductions in air
pollution, water pollution, and land disturbance [, and greenhouse gas
emissions];

(2) reductions in peak demand
for electricity and natural gas, and the overall impact on the costs to
customers of electricity and natural gas;

(3) increases in renewable
energy development, manufacturing, investment, and job creation opportunities
in this State; and

(4) reductions in State and
national dependence on the use of fossil fuels.

p. Class I RECs shall be
eligible for use in renewable energy portfolio standards compliance in the
energy year in which they are generated, and for the following two energy
years. SRECs shall be eligible for use in renewable energy portfolio standards
compliance in the energy year in which they are generated, and for the
following two energy years.

(cf: P.L.2009, c.289, s.2)

7. This act shall take effect
immediately.

STATEMENT

This bill would repeal the
“Global Warming Response Act,” P.L.2007, c.112 (C.26:2C-37 et al.), and related
sections of P.L.2007, c.340 (C.26:2C-45 et al.), which is commonly referred to
as the “Regional Greenhouse Gas Initiative” or RGGI implementing law. The bill
would also amend various sections of the statutory law in order to remove any
references to the acts being repealed.

The bill would retain section
13 of the Regional Greenhouse Gas Initiative implementing law, as well as
subsections g. and h. of P.L.1999, c.23 (C.48:3-87), which were added to that
section of law by the Global Warming Response Act, since these provisions do
not relate to the regulation of greenhouse gas emissions, and instead provide
only for the discretionary investment, funding, and adoption of energy
efficiency and renewable energy programs and standards.

Finally, the bill would
transfer to the
General Fund all of the unencumbered moneys in the “Global Warming Solutions Fund,”
which was established pursuant to the Regional Greenhouse Gas Initiative
implementing law. This transfer of funds would also have the effect of
reducing the amount of moneys available for the Forest Stewardship Incentive
Fund.